Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the name given to the following function of the central bank in times of financial crises? To avert panic, central banks should lend

What is the name given to the following function of the central bank in times of financial crises?
To avert panic, central banks should lend early and freely (i.e., without limit), to solvent firms, against good collateral, and at high rates (Walter Bagheot, 1873)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Econometrics

Authors: R Hill

4th Edition

1118136969, 9781118136966

More Books

Students also viewed these Economics questions

Question

Describe how language reflects, builds on, and determines context?

Answered: 1 week ago